Laserfiche WebLink
5 <br />Cable System within the City allocated according to this paragraph using total <br />Cable Service Subscribers reached by the advertising. <br /> <br />(ii) “Gross Revenues” shall not include: <br /> <br />1. actual bad debt write-offs, except any portion which is subsequently <br />collected, which shall be allocated on a pro rata basis using Cable Services <br />revenue as a percentage of total Subscriber revenues within the City; and <br /> <br />2. unaffiliated third-party advertising sales agency fees which are <br />reflected as a deduction from revenues. <br /> <br />Grantee shall allocate fees and revenues generated from bundled packages and services to <br />cable revenues pro rata based on the current published rate card for the packaged services <br />delivered on a stand-alone basis as follows: <br /> <br />(i) To the extent revenues are received by Grantee for the provision of a <br />discounted bundle of services which includes Cable Services and non-Cable <br />Services, Grantee shall calculate revenues to be included in Gross Revenues using <br />a GAAP methodology that allocates revenue, on a pro rata basis, when comparing <br />the bundled service price and its components to the sum of the published rate card, <br />except as required by specific federal, state or local law (for example, it is expressly <br />understood that equipment may be subject to inclusion in the bundled price at full <br />rate card value). The City reserves its right to review and to challenge Grantee’s <br />calculations. <br /> <br />(ii) Grantee reserves the right to change the allocation methodologies set forth <br />in this section in order to meet the standards required by governing accounting <br />principles as promulgated and defined by the Financial Accounting Standards <br />Board (“FASB”), Emerging Issues Task Force (“EITF”) and/or the U.S. Securities <br />and Exchange Commission (“SEC”). Grantee will explain and document the <br />required changes to the City upon request or as part of any audit or review of <br />Franchise Fee payments, and any such changes shall be subject to the next <br />subsection below. <br /> <br />(iii) Resolution of any disputes over the classification of revenue should first be <br />attempted by agreement of the parties, but should no resolution be reached, the <br />parties agree that reference shall be made to GAAP as promulgated and defined by <br />the Financial Accounting Standards Board (“FASB”), Emerging Issues Task Force <br />(“EITF”) and/or the U.S. Securities and Exchange Commission (“SEC”). <br />Notwithstanding the foregoing, the City reserves its right to challenge Grantee’s <br />calculation of Gross Revenues, including the interpretation of GAAP as <br />promulgated and defined by the FASB, EITF and/or the SEC. <br /> <br />Notwithstanding the above provisions, Grantee will calculate Franchise Fees using the <br />same methodology it uses for all Twin Cities Region franchising authorities with respect <br />to the allocation of revenues among Cable and non-cable Services. Upon written notice by <br />City to Grantee showing that Grantee has afforded more favorable treatment with respect